Bank of Taiwan Plans to Open First Branch in Shanghai As Ties Improve

Bank of Taiwan plans to open a branch
in Shanghai to offer banking services to Chinese clients.

The move will follow the establishment of yuan business in
Hong Kong last year, bank Chairwoman Susan Chang told reporters
today in Taipei.

Bank of Taiwan aims to accelerate its expansion in China
after Taiwan’s government in March announced details of an
accord to allow investment in financial companies across the
Taiwan Strait, the latest agreement to underscore warming ties
six decades after a civil war. Taiwan President Ma Ying-jeou is
seeking to deepen connections with the island’s biggest trading
partner to bolster an economic recovery.

Taiwanese banks, insurers and stock and futures brokerages
will each be allowed to invest in one Chinese counterpart and
vice versa, the Financial Supervisory Commission said March 16.
Domestic banks will be allowed to invest as much as 15 percent
of their net worth in China, while mainland banks can set up
representative offices and branches in Taiwan, or acquire a
maximum 5 percent stake in Taiwanese counterparts.

In response to rising Chinese tourists in Taiwan, Taiwan
will offer cash withdraw services to Chinese Unionpay cards
through automated teller machines from 18 banks in Taiwan by the
end the month, Chang said.

Separately, Taiwan Financial Holding Co., the parent of
Bank of Taiwan, doesn’t have any share sale plan this year or
next year, Chang said.